Sandvik AB, Stockholm, established the Sandvik Pension Fund, with 1.07 billion kroner ($100 million) in assets, for its salaried employees in Sweden, said Gunnar Batelsson, spokesman. The firm set up the fund to transfer pension liabilities to a separate trust.
Sandvik officials hope the fund’s assets will generate an average return that exceeds the financial indexing of the 50 million kroner a year pension liability, which would lower the company’s pension costs, according to a company statement.
